(MENAFN) Asian bond markets experienced a downturn on Thursday, influenced by a wave of selling observed in US Treasuries during the preceding session. However, Chinese stocks managed to buck the trend, posting gains following robust trade data released by the country. Notably, 10-year bond yields surged in Australia, New Zealand, and Japan, while yields on US sovereign debt sustained their upward trajectory from the previous day. The uptick in yields came in the wake of an auction of 10-year bonds valued at USD42 billion, which failed to garner robust demand.
In Japan, bond yields climbed following a hawkish summary of the Bank of Japan's latest meeting, which hinted at the potential for reducing bond purchases and raising interest rates in the future. The prospect of tighter monetary policy contributed to the upward pressure on Japanese yields. Despite this, the Japanese yen experienced minimal movement after hitting a weekly low earlier in the session. Japanese authorities have reiterated their commitment to implementing necessary measures to provide support, although concerns linger regarding the possibility of a new Asian currency war.
Across Asian markets, equities delivered a mixed performance, with Japan and China witnessing gains while Australia and South Korea registered declines. In the United States, futures markets reflected a downward trend following losses incurred by major companies subsequent to a series of disappointing updates on economic data. Notably, at the close of the trading session, shares of companies such as Arm Holdings, Intel, and Airbnb experienced declines in after-market trading, prompted by reports signaling a slowdown in growth. This divergence in market performance underscores the complex interplay of factors influencing investor sentiment, ranging from macroeconomic indicators to corporate earnings reports.
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